What is Catalog subsystem ?
Catalog subsystem is a component of WebSphere Commerce Server
that provides online catalog navigation, partitioning, categorization, and
associations. It contain all logic and data relevant to an online catalog and
associations or relationships among them.
Online catalog consists of the goods and
services you offer for sale.
Online catalogs can differ greatly from store to
store, depending on the type and amount of merchandise.
For a catalog for purchase we
need many things:
1      Prices,
Product data, such as descriptions and images of your merchandise.
2.    Categories,
as most, but not all catalogs divide merchandise into categories, to facilitate
navigation for   customers.
3.       A
display method for what you are selling.
The online Catalog can be a catalog
groups (or categories) or a catalog
entries.
Catalog entries
A catalog entry is a product displayed in the
store's online catalog for purchasing from the store.
Catalog entries can be a single item (atomic) or composed of several other catalog entries (composite).
Atomic  Catalog entries 
A single orderable item.
An orderable item is called a SKU. Atomic item is a SKU.
A fully resolved package is a atomic
 Composite catalog entries:
 A catalog entry represents unresolved products, packages, or bundles that may need additional information before becoming atomic entities.
An example is resolving a product into an item through SKU resolution, performed by the ResolveSkuCmd task command.
If necessary, you can create new CatalogEntry type objects that do not fit into one of the existing Product, Item, Package, Bundle, or DynamicKit models. 
A catalog entry can be a product, item,
package, bundle, or dynamic kit.
Item and product
Flat screen T.V (Product)
--  T.V screen size 12 inch(item)
--  T.V screen size 15 inch(item)
--  T.V screen size 20 inch(item)
--  T.V screen size 24 inch(item)
 ….
Item 
 | 
  
Product 
 | 
 
tangible unit of merchandise that has a specific name,
  part number, and price. 
 | 
  
a group of items that exhibit the same attributes 
 | 
 
Item is having specific attribute value. 
A 15 inch hammer with a wooden handle (part
  number 15) is an item. It is having specific attribute value. 
handle type : Wooden 
Size: 15 inch 
 | 
  
Items related to a particular product exhibit the same set
  of attributes. 
E.g: 
Hammer is a product , it’s attributes are "handle
  type" and "size". 
 | 
 
All the items are coming under one product. 
 | 
  
each item should be associated to one product in WebSphere
  Commerce Accelerator 
 | 
 
User can purchase an item. 
An item is orderable(SKU) 
 | 
  
A product cannot be purchased 
 | 
 
Packages and bundles
Packages and bundles are
groupings of catalog entries used for promotional purposes.
Package 
 | 
  
Bundle 
 | 
 
a package is an atomic collection
  of catalog entries 
 | 
  
A bundle is a collection of
  catalog entries that allow customers to buy multiple items with one click 
 | 
 
Packages can be unresolved or
  fully resolved. 
 | 
  
A bundle can be a grouping of
  items, or a combination of products, items, and fully resolved packages. 
 | 
 
A fully resolved package is
  comparable to an item, with its own price, and can be added to a shopping
  cart. unresolved packages must first be transformed into fully resolved
  packages before adding to shopping cart. 
The Package will be considered as
  a single item , after adding to shopping cart. We will not be able to
  decompose, modify or remove individual items from that package. 
 | 
  
When adding to shopping cart , the
  each items of bundles will be decomposed into separate orderable SKUs that
  are added individually to the shopping cart. 
We can modify or remove each item
  from cart according to our choice. 
 | 
 
a computer package:  contain
  a specific central processing unit, monitor, and hard drive that cannot be
  sold separately. 
 | 
  
Computer bundle: 
a computer bundle might be
  composed of a central processing unit, a monitor, a hard drive, and a CD-ROM
  drive. 
Once the bundle is added to
  shopping cart, user can remove or modify items( processing unit, a monitor, a
  hard drive, and a CD-ROM drive). 
 | 
 
Example:
A Computer consist of  CPU, monitor and hard drive etc.
Computer product can be displayed as package or
bundle according to their business.(according to the sales how they want to
display online).
If business is selling it has package , we will
get it as a single item with CPU, monitor and hard drive.
If it is selling as bundle , after adding to
shopping cart customer can  remove or modify item  , i.e we
customer can individually buy a monitor or cpu or hard drive.
Dynamic Kit and Static kit
Dynamic Kit 
 | 
  
Static kit 
 | 
 
A dynamic kit is a type of catalog entry
  which can be dynamically configured by the customer. This configuration (or
  grouping) of products is based on the customer's requirements and is sold as
  a single unit. 
 | 
  
A static kit is a group of products that
  are ordered as a unit. The information about the products contained in a
  static kit is predefined and controlled within WebSphere Commerce. 
 | 
 
Adding a dynamic kit to an order is similar to adding a
  package. Like a package, the individual components of a dynamic kit cannot be
  modified and the entire configuration must be fulfilled as a whole. However,
  you may change the dynamic kit components by reconfiguring it using an
  external product configurator. 
 | 
  
The individual components within the order cannot be
  modified and must be fulfilled together. A static kit will backorder if any
  of its components are unavailable. 
 | 
 
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